Supplier Development

Topics: Supply chain management, Supply chain, New product development, Inventory, Management / Pages: 16 (3926 words) / Published: Jun 16th, 2013
supplier development

An exploratory study on Supplier Development and its Benfits

Strategic Procurement 602

Curtin University

By
Kevin Varghese
Chaoyi Ni
Shaktikam Saikia
Manikandan

Table of Contents

1.0 Introduction and context of supplier development…………………...3 2.0 Supplier development process………………………………………...5 3.1 Performance Measurement…………………………………….5 3.2 Evaluation and Motivation……………………………………..8 3.3 Rwards & Recognition………………………………………...9 3.4 Early Supllier Involvement…………………………………….9 3.5 Adverserial to partnership…………………………………….10 3.6 Supply Base Optimization……………………………………11 3.0 Case review Dell computers…………………………………………12 4.0 Conclusion…………………………………………………………...13 5.0 References…………………………………………………………...14

1.0 Introduction and Context

“You can’t improve what you can’t measure.” Dr. Michael Hammer, a companies performance is driven by the performance of its external supply partners. In future, the competitvness will be determined by the ability of companies to develop strategies to optimally manage and align the network of supplier relations or otherwise known as supplier development. Supplier development is defined as “Any set of activities undertaken by a buying firm to identify, measure and improve supplier performance and facilitate the continuous improvement of the overall value of goods and services supplied to the buying companies business unit” (Krause et al 1998).
There are two types of supplier development, externelized supplier development and internerlized supplier development. In the first the supplier performance is measured and incentives and provided to motive them. In the latter is when supplier are given resources and investment to perform better. Recent studies have shown that manufacturing industry particularly automotive and aerospace have taken steps to work more closely with their suppliers. For an individual company their supply chain



References: Jim Tarabori, 2011. Supplier collaboration. The game changer in supplier ecosystem, finding new answers in business. CNG & associates. Glenn M. Parker, 2002, Cross- Functional Teams : Working with Allies, Enemies, and Other Strangers, Completely Revised and Updated 0002 Edition, John Wiley & Sons. . Henry J. Lindborg, 1997, The Basics of Cross-Functional Teams, Productivity Press. Holger Materlik, 2009, Implementing Early Supplier Involvement: A Judgement and Decision Theory-based Investigation of Human Behavior.

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